Review of the Greek Energy Sector; Analysis and Policy Recommendations

This is a sensitive period for the Greek energy sector, since on the one hand, national elections offer a chance for the realignment of policy regardless of the ruling party, while on the other hand, a series of crucial issues are ongoing with repercussions for the future of the market. Major changes are coming due to the liberalization of the Power and Gas market, ambitious privatization processes of state-controlled energy companies and the target model objectives set by the European institutions and significant investment potential is on the horizon.

Based on the above, HAEE decided it would be appropriate to issue this publication and proceed with an in-depth analysis of everything that is happening today in the energy sector, how these are connected to wider trends and also, the challenges that the new government will have to face. Furthermore, HAEE includes its own recommendations for each one of the sectors addressed in this policy paper (the Energy Exchange, the Electricity Market, the Renewables, the Natural Gas, the Energy Efficiency and the Oil and Refining).

HAEE stands ready to analyze and review the course of the energy transition in the Greek market through its newly released "Greek Energy Market Report 2019" by providing all the most recent data and valuable insights. In this regard, HAEE’s annual report manages to identify the relative strengths and weaknesses of the Greek energy market during a time of great change. The goal is to provide a full picture to international or domestic companies that might be willing to invest in the Greek energy sector, market participants, regulators and policy makers. Progress is assessed through a series of variables including the country's goals for 2020 and 2030, demographics, regulatory frameworks, energy security, sustainability, liberalization and through the use of detailed statistics.

The majority of EU countries have successfully established Power Exchanges through which cross-border transactions are conducted in a transparent and reliable manner, ensuring greater liquidity in energy markets and at the same time providing a competitive environment for the benefit of the consumers. In the case of Greece, in an effort to enhance competition compared to the previous period, the country has introduced numerous steps towards the liberalization and deregulation of its wholesale electricity market. The Policy Brief discusses in depth one of these steps, which is the establishment of the Hellenic Energy Exchange (HEnEx) in order to operate the Energy Derivatives Market, the Day-Ahead Market and the Intra-Day Market.

Natural gas is the fastest growing form of primary energy worldwide, given its advantages compared to other forms of energy and its pivotal contribution to the direction of sustainable development. It is an essential element for the promotion of the European Energy Policy and at the same time, the bridge for the transition from conventional to renewable energy forms. Additionally natural gas is the most efficient and sustainable raw material for ammonia/ fertilizers production.

A considerable positive effect on GDP growth derives from the particular abolishment of the excise duty on natural gas when used as feedstock. The precise increase attributable to the growth in domestic demand is projected to eventually result in a GDP rise of € 754 million. An additional positive feature of the complete abolition in natural gas would be towards the impact on employment, which is estimated to increase by a total number of 12.500 jobs. In conclusion, nowadays that industrial production seems to progressively recover, the aim should be towards promoting and encouraging production, rather than burden it with taxes and levies that cannot be covered anymore.

"The Energy Journal" is the official quarterly journal of the IAEE. It was founded in 1980 to promote the advancement and dissemination of new knowledge concerning energy and related topics. The editors strive to publish a blend of theoretical, empirical and policy related papers in energy economics. Articles published in the Energy Journal provide rigorous and innovative analyses of interest to academics, energy industry professionals, civil servants and regulators, and the financial community such as Wall Street analysts.

Economics of Energy & Environmental Policy (EEEP), established as an IAEE publication in 2012, is policy oriented. It provides a scholarly and research-based, yet easily read and accessible source of information on contemporary economic thinking and analysis of policy issues in the interface between energy and environmental economics. Its editors are Jean-Michel Glachant (European University Institute in Florence), Paul Joskow (Alfred P. Sloan Foundation) and Michael Pollitt (Cambridge University).

Four times a year IAEE sends its members the "IAEE Energy Forum". The newsletter gives an account of IAEE Affiliate/Chapter activities and provides special reports and energy information from around the world. The Newsletter also contains articles on a wide range of applied/topical energy economics issues, as well as notes and special notices of interest to members. Further, the publication lists a calendar of upcoming conferences/seminars/trade shows as well as recently published books of interest to energy economists. If you are interested in receiving a subscription to the "IAEE Energy Forum", you can join online.